a) KDS Steel Ltd. has issued common stock at the market value Tk. 360 with flotation cost Tk. 15 at par. The company pays dividend per years Tk. 18 with 8% growth rate, what is the cost of the stock?

b) EDF 5 Housing Ltd. has issued bond at Tk. 1,000 at par at the rate of 12% coupon rate for 10 years. The flotation cost is Tk. 50 per bond and tax rate is 40%. If the bond is redeemable at 10% premium and issued (i) at par value (ii) at 10% premium and (iii) at 10% discount. What is the cost of the bond?